Rate hike caps banking gainers

GregMorcroft

NEW YORK (CBS.MW) -- Most financial stocks closed higher Tuesday, but the Federal Reserve's widely expected decision to lower rates trimmed some early gains in banking shares.

The central bank's policy-setting Federal Open Market Committee increased its target for overnight interest rates by a quarter percentage point to 2.25 percent Tuesday and repeated that rates can rise further in coming months. See full story.

American Express
AXP, +0.24%
shares rose 1.7 percent to $55.95 after the company reached a deal with Citigroup to offer the firm's credit cards. Citi
C, -0.34%
shares added 0.2 percent to $46.87. Both stocks are components of the Dow Jones Industrial Average, which closed up 38 points at 10,676.

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